Vietnam heads for record trade deficit

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HANOI, July 26 (AFP): Vietnam is headed for a record trade deficit this year after the gap widened to 5.45 billion dollars in the first seven months, more than last year's total, the government said today.
Imports have vastly outpaced exports as Vietnam, a new World Trade Organisation (WTO) member with an economy growing at above 8.0 per cent per year, is buying more machinery, parts, fuel and commodities including steel.
From January to July, imports grew 29.8 per cent to 32.24 billion dollars, while exports rose 19.6 per cent to 26.79 billion dollars, according to an early estimate by the General Statistics Office (GSO).
The trade ministry this month predicted Vietnam's trade deficit could top eight billion dollars this year, a figure it said was high but "acceptable for a developing economy on its way to international integration."
Last year, Vietnam's trade deficit stood at 5.09 billion dollars.
Among imports, the sharpest gains was a 52.4 per cent rise in steel to 2.44 billion dollars in the seven-month period while machinery and equipment rose 42.2 per cent to 5.04 billion dollars.